February 2017 Update

The Police Pension board met on February 15th, 2017. The fund balance is up to $2.3 Billion, a new all-time record for the system. Our 1 year return is 12.44% and our 5 year return is 8.02%. Our funding ratio was calculated last summer at 98.7%. Our retirees have not had a COLA in almost 10 years. Their loss of purchasing power tied to the CPI during this time is now estimated to be in excess of -13%. We are monitoring several legislative bills, several of which are addressing retiree COLAs or Stipends.

There is also a bill, (HB1512) which  in the middle includes language of a different and unrelated topic. The language in question appears to support establishing an Oklahoma Investment Policy Board. Some have suggested this may be the first step to consolidate all of the Pension boards into one board. This bill is being closely monitored by the FOP.

The related bills are as follows:

HB1119 – is our annual IRS technical language cleanup bill

HB1340 – addresses one time stipend to retired members meeting certain criteria

HB1512 – prohibits contractual agreement with companies “Boycotting Israel” …and established the Investment Policy Board

HB1658- requires one tenth of one percent of taxes collected on premiums be appointed for a Firefighter Turnout Gear Safety revolving Fund.

HB1796-Allows one time stipend not to exceed 2 percent of the amount of the gross annual retirement benefit received by a retired member as long as after the distribution the retirement system funded ratio equals or exceed 90%.

HB1812-modiies definition for full time law enforcement officers employed by federally recognized Native American Tribes.

SB0491-allows for a COLA or stipend to be funded by the pension system. The current law requires a financial study by the state and for them to fund any COLAs or stipends in accordance with provision established by OPLA..

SB0676-Legislative intent to provide a cost of living adjustment of 2 percent to members of OPPRS who are receiving benefits as of 06-30-16 and continues on or after 07-01-17. Which reflects a replacement of the loss of purchasing power, while remaining consistent with the basic benefit formula of the system.

We continue to aggressively utilize Securities Class Action Settlements to recover lost investments due to fraud. We are frequently the lead investigator in several of these actions. A few of the recent settlements and near settlements, which show total dollar amounts of which OPPRS only receives a fraction of the total, are as follows:

Magnachip – settlement amount $23,500,000- Claims deadline 12/21/16-eligibility “likely”.

Fifth Street Finance Corp. – settlement amount $14,050,000-claims deadline 03//27/17- eligibility “likely”.

Sientra, Inc – settlement amount $10,900,000-claims deadline 05/08/17- eligibility “likely”.

We are involved in 14 other litigations for fraud.

All of the monthly meeting information can be found on the web site.

Please contact me if you have any questions.

Jeff Pierce
State Trustee District 6
Oklahoma Police Pension & Retirement System